Colleges are often associated with big metropolitan cities, but they can also be found in smaller, secondary cities across the country. In fact, these college towns are becoming increasingly popular for real estate investment. Hire a Helper, a hybrid moving company, recently conducted a study to identify the hottest markets for real estate potential in college towns.
According to the report, the average price of a home in a college town in 2023 is $377,800, which is 7% lower than the national average. This means that buyers can find more affordable housing options in these areas compared to major cities. Homes in college towns have also seen a 4% appreciation in the last 12 months, compared to a national growth rate of 1.6% in home prices.
The study found that Indiana, Pennsylvania is the best college town for real estate investment. With relatively low home prices ($160,000), a solid projected growth rate of 12%, and potential for high rental income, it offers great opportunities for investors. On the other end of the spectrum, Gary, Indiana is the least expensive college town in the United States, with an average home costing around $71,000 in 2023.
Athens, Georgia was identified as the hardest real estate market to get into among college towns. With an average home price of $355,400 and a high number of new listings compared to home sales, it presents a challenging market for buyers.
The study also highlighted other top-ranking college towns for real estate investment. McPherson, Kansas ranked second, followed by Brownwood, Texas, Williamsport, Pennsylvania, Winfield, Kansas, and Atchison, Kansas.
Geographically, the top-ranked towns are spread across the eastern part of the US. While some are located in the southern region, such as Brownwood, Texas, others are in the northern part, like Williamsport, Pennsylvania.
As the cost of room and board continues to increase, many parents are turning to buying a house as a cheaper housing option for their college-bound children. It not only provides a more affordable accommodation but also acts as an investment with a potential for appreciation.
If you are interested in learning more about the study and exploring the complete report, you can click here to access it. The report provides detailed insights and analysis of the top college towns for real estate investment potential in 2023.
Overall, college towns are emerging as attractive markets for real estate investment. With affordable housing options, potential for appreciation, and a steady stream of demand from students and faculty, these towns offer promising opportunities for investors.